FORM 10-Q

              SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

     [X}   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
              THE SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended September 30, 1998
                             or

     [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
               OF THE SECURITIES EXCHANGE ACT OF 1934

          For the transition period from   N/A   to   N/A

                   Commission File Number: 0-22520

                 CENTENNIAL MORTGAGE INCOME FUND
        (Exact name of registrant as specified in its charter)

           California                          33-0053488
(State or other jurisdiction of             (I.R.S. Employer
 incorporation or organization)             Identification No.)

 1540 South Lewis Street, Anaheim, California        92805
  (Address of principal executive offices)         (Zip Code)

Registrant's telephone number, including area code: (714)502-8484

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                          YES  X     NO












                             PART I


ITEM 1. FINANCIAL STATEMENTS

          CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                         A Limited Partnership

                     Consolidated Balance Sheets
<TABLE>
<CAPTION>
<S>                              <C>               <C>
                                   September 30,     December 31,
   Assets                              1998             1997
                                    (Unaudited)
-----------------------------------------------------------------
Cash and cash
  equivalents (note 3)            $ 1,829,000       $ 1,018,000

Real estate loans
  receivable, earning                 313,000           782,000
Real estate loans
  receivable, nonearning            1,067,000         1,072,000
Real estate loans receivable
  from unconsolidated investee,
  earning (note 5)                     87,000           752,000
Real estate loans receivable
  from unconsolidated investee,
  nonearning (note 5)                 732,000         1,241,000
-----------------------------------------------------------------
                                    2,199,000         3,847,000

Less allowance for possible
  loan losses                         569,000           714,000
-----------------------------------------------------------------
Net real estate loans receivable    1,630,000         3,133,000
-----------------------------------------------------------------
Real estate owned, held
  for sale, (notes 4 and 6)         7,450,000         7,450,000
Real estate owned, insubstance
  foreclosed (note 4)                     ---         1,040,000
-----------------------------------------------------------------
                                    7,450,000         8,490,000





   See accompanying notes to consolidated financial statements
                               1
           CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                        A Limited Partnership

                     Consolidated Balance Sheets
                           (Continued)

<CAPTION>
<S>                              <C>               <C>
                                   September 30,     December 31,
                                       1998             1997
   Assets                           (Unaudited)
-----------------------------------------------------------------
  Less allowance for
   possible losses on
   real estate owned                2,355,000         2,354,000
-----------------------------------------------------------------
    Net real estate owned           5,095,000         6,136,000
-----------------------------------------------------------------
Accrued interest receivable             1,000             5,000
Due from unconsolidated investee          ---            58,000
Other assets, net                      59,000            47,000
-----------------------------------------------------------------
                                   $8,614,000       $10,397,000
=================================================================
























  See accompanying notes to consolidated financial statements
                              2
        CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                     A Limited Partnership

                 Consolidated Balance Sheets
                         (Continued)

<CAPTION>
<S>                                  <C>           <C>
                                   September 30,     December 31,
                                       1998             1997
Liabilities and Partners' Equity    (Unaudited)
-----------------------------------------------------------------
Note payable (note 6)                $ 2,396,000    $ 2,421,000
Note payable to
  affiliate (note 5)                     136,000         73,000
Accounts payable and
  accrued liabilities                     83,000         20,000
Interest and property taxes
  payable on real estate owned            36,000            ---
Interest payable to affiliate on
  note secured by
  real estate (note 5)                    39,000         39,000
Payable to affiliates                     19,000            ---
Deferred profit on
  equity participation                   289,000        289,000
-----------------------------------------------------------------
   Total liabilities                   2,998,000      2,842,000
-----------------------------------------------------------------
Partners' equity (deficit)
  -- 38,729 limited partnership
  units outstanding as of
  September 30, 1998 and
  December 31, 1997
    General partners                    (525,000)      (525,000)
    Limited partners                   6,141,000      8,080,000
-----------------------------------------------------------------
    Total partners' equity             5,616,000      7,555,000

Commitments (note 7)
Contingencies (note 8)
-----------------------------------------------------------------
                                      $8,614,000    $10,397,000
=================================================================

</TABLE>



   See accompanying notes to consolidated financial statements
                               3
          CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                        A Limited Partnership

               Consolidated Statements of Operations
                          (Unaudited)
<TABLE>
<CAPTION>
                        Nine Months             Three Months
                     Ended September 30,     Ended September 30,
                      1998       1997         1998       1997
<S>                  <C>        <C>          <C>        <C>
-----------------------------------------------------------------
Revenue:
Interest income on loans
 to nonaffiliates,
 including fees   $  304,000  $   89,000  $  114,000  $   34,000
Interest income
 on loans to
 affiliates,
 including fees       31,000      20,000       7,000      13,000
Interest on interest-
 bearing deposits     65,000      53,000      22,000      16,000
Income from
 operations of real
 estate owned        500,000     597,000     162,000     161,000
Gain on sale of
 real estate owned    21,000         ---         ---         ---
Other                  1,000       6,000         ---         ---
-----------------------------------------------------------------
   Total revenue     922,000     765,000     305,000     224,000

Expenses:
Provision for
 possible losses     155,000         ---     155,000         ---
Share of losses in
 unconsolidated
 investee (note 5)    82,000      91,000       6,000      37,000
Operating expenses
 from operations of
 real estate owned   110,000     114,000      43,000      48,000
Operating expenses
 from operations
 of real estate
 owned paid to
 affiliates           25,000      31,000      10,000       8,000



   See accompanying notes to consolidated financial statements
                               4
          CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                        A Limited Partnership

               Consolidated Statements of Operations
                          (Unaudited)
                          (Continued)
<CAPTION>
                           Nine Months           Three Months
                        Ended September 30,   Ended September 30,
                         1998       1997       1998       1997
<S>                     <C>        <C>        <C>        <C>
-----------------------------------------------------------------
Expenses
 associated with
 non-operating
 real estate owned    97,000     114,000      29,000      39,000
Loss on sale
 of property             ---       6,000         ---       6,000
Depreciation and
 amortization
 expense               6,000      10,000       2,000       3,000
Interest expense     187,000     293,000      56,000      93,000
General and
 administrative,
 affiliates (note 4) 213,000     156,000      69,000      49,000
General and
 administrative,
 nonaffiliates        60,000      84,000      26,000      29,000
Mortgage
 investment
 servicing fees
 paid to affiliates    2,000       3,000       1,000       1,000
-----------------------------------------------------------------
   Total expenses    937,000     902,000     397,000     313,000
-----------------------------------------------------------------
 Loss before
 minority interest   (15,000)   (137,000)    (92,000)    (89,000)

Minority interest     74,000      55,000      45,000       9,000
-----------------------------------------------------------------
Net income(loss)  $   59,000  $  (82,000) $  (47,000) $  (80,000)
=================================================================
Net income (loss)
  per limited
  partnership
  unit            $     1.52  $    (2.12) $    (1.21) $    (2.07)
=================================================================
</TABLE>
   See accompanying notes to consolidated financial statements
                               5
        CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                    A Limited Partnership

           Consolidated Statement of Partners' Equity
                         (Unaudited)

<TABLE>
<CAPTION>
          For the nine months ended September 30, 1998

<S>                   <C>            <C>            <C>
                                                        Total
                         General        Limited        Partners'
                         Partners       Partners        Equity
-----------------------------------------------------------------
Balance (deficit) at
  December 31, 1997   $  (525,000)   $  8,080,000   $  7,555,000

Net income                    ---          59,000         59,000

Distribution to
  limited partners            ---      (1,998,000)    (1,998,000)
-----------------------------------------------------------------
Balance (deficit) at
  September 30, 1998  $  (525,000)   $  6,141,000   $  5,616,000
=================================================================

</TABLE>




















   See accompanying notes to consolidated financial statements
                               6
       CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                    A Limited Partnership

             Consolidated Statements of Cash Flows
                        (Unaudited)
<TABLE>
<CAPTION>
      For the nine months ended September 30, 1998 and 1997

<S>                             <C>             <C>
                                    1998              1997
-----------------------------------------------------------------
Cash flows from
 operating activities:
 Net income (loss)             $    59,000       $   (82,000)
 Adjustments to reconcile
  net income (loss) to net
  cash provided by (used in)
  operating activities:
   Amortization of unearned
    loan fees                       (5,000)           (1,000)
   Provision for possible
    losses                         155,000               ---
   Interest accrued to
    principal on loans
    receivable                      (5,000)          (24,000)
   Depreciation expense              6,000            10,000
   Minority interest               (74,000)          (55,000)
   (Gain) loss on sale of
    real estate owned              (21,000)            6,000
   Share of losses in
    unconsolidated investee         82,000            91,000
Changes in assets
 and liabilities:
  (Increase) decrease in accrued
   interest receivable               4,000            (1,000)
  (Increase) decrease in
   due from unconsolidated
   investee                         58,000           (11,000)
  Increase in
   other assets                    (18,000)           (6,000)
  Increase (decrease) in
   accounts payable and
   accrued liabilities              63,000           (19,000)
  Increase in interest
   and property taxes payable
   on real estate owned             36,000            37,000

   See accompanying notes to consolidated financial statements
                               7
       CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                  A Limited Partnership

          Consolidated Statements of Cash Flows
                       (Unaudited)
                       (Continued)

<CAPTION>
      For the nine months ended September 30, 1998 and 1997

<S>                             <C>             <C>
                                    1998              1997
-----------------------------------------------------------------
  Decrease in interest
   payable to affiliates
   on notes secured
   by real estate owned               ---            (4,000)
  Increase in payable
   to affiliates                    19,000            1,000
-----------------------------------------------------------------
   Net cash provided by
    (used in) operating
    activities                     359,000           (58,000)
-----------------------------------------------------------------
Cash flows from
 investing activities:
  Principal collected
   on loans to customers           507,000            10,000
  Principal collected on
   loans made to
   unconsolidated investee       1,287,000           313,000
  Advances on loans made
   to unconsolidated
   investee (note 5)              (196,000)         (760,000)
  Advances on loans made
   to customers                    (22,000)          (13,000)
  Proceeds from sale of
   real estate owned               762,000           929,000
-----------------------------------------------------------------
  Net cash provided by
   investing activities          2,338,000           479,000
-----------------------------------------------------------------






   See accompanying notes to consolidated financial statements
                               8
       CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                  A Limited Partnership

          Consolidated Statements of Cash Flows
                       (Unaudited)
                       (Continued)
<CAPTION>

      For the nine months ended September 30, 1998 and 1997

<S>                             <C>             <C>
                                    1998              1997
-----------------------------------------------------------------
Cash flows from
 financing activities:
  Principal advances
   on notes payable
   to affiliates                   137,000            17,000
  Principal payments
   on notes payable                (25,000)          (15,000)
  Principal payments on notes
   payable to affiliates               ---          (134,000)
  Cash distribution to
   limited partners             (1,998,000)              ---
-----------------------------------------------------------------
   Net cash used in
    financing activities        (1,886,000)         (132,000)
-----------------------------------------------------------------
Net increase in
 cash and cash equivalents         811,000           289,000

Beginning cash and
  cash equivalents               1,018,000         1,712,000
-----------------------------------------------------------------
Ending cash and cash
  equivalents                  $ 1,829,000       $ 2,001,000
=================================================================
Supplemental schedule of
 cash flow information:
  Cash paid during
   the nine months for:
    Interest                   $   183,000       $   286,000





</TABLE>
   See accompanying notes to consolidated financial statements
                               9
        CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
                     A Limited Partnership

           Notes to Consolidated Financial Statements
                           (Unaudited)

                     September 30, 1998 and 1997

(1)  BUSINESS

Centennial Mortgage Income Fund (the "Partnership") initially
invested in commercial, industrial and residential income-
producing real property through mortgage investments consisting
of participating first mortgage loans, other equity participation
loans, construction loans, and wrap-around and other junior
loans.  The Partnership's underwriting policy for granting credit
was to fund loans secured by first and second deeds of trust on
real property.  The Partnership's area of concentration is in
California.  In the normal course of business, the Partnership
participated with other lenders in extending credit to single
borrowers; the Partnership did this in an effort to decrease
credit concentrations and provide a greater diversification of
credit risk.

As of September 30, 1998, a majority of the loans secured by
operating properties have been repaid to the Partnership.
However, during the early 1990's, real estate market values for
undeveloped land in California declined severely.  As the loans
secured by undeveloped land and certain operating properties
became delinquent, management of the Partnership elected to
foreclose on certain of these loans, thereby increasing real
estate owned balances.  As a result, the Partnership has become a
direct investor in this real estate and intends to manage
operating properties and develop raw land until such time as the
Partnership is able to sell this real estate owned.

As required by the Partnership Agreement, the Partnership is
currently in the repayment stage, and as a result, cash proceeds
from mortgage and real estate investments are no longer available
for reinvestment.

(2)  BASIS OF PRESENTATION

The consolidated financial statements are unaudited and reflect
all adjustments, consisting only of normal recurring accruals,
which are, in the opinion of management, necessary for a fair
statement of the results of operations for the interim periods.


                             10
Results for the nine months ended September 30, 1998 and 1997 are
not necessarily indicative of results which may be expected for
any other interim period, or for the year as a whole.

Information  pertaining to the nine months  ended  September  30,
1998 and 1997 is unaudited and condensed inasmuch as it does  not
include all related footnote disclosures.

The condensed consolidated financial statements do not include
all information and footnotes necessary for the fair presentation
of financial position, results of operations and cash flows in
conformity with generally accepted accounting principles.  Notes
to consolidated financial statements included in Form 10-K for
the year ended December 31, 1997 on file with the Securities and
Exchange Commission, provide additional disclosures and a further
description of accounting policies.

Net Income (Loss) per Limited Partnership Unit

Net income (loss) per limited partnership unit for financial
statement purposes was based on the weighted average number of
limited partnership units outstanding of 38,729 for all periods
presented.

Impaired Loans

The Partnership considers a loan to be impaired when based upon
current information and events, it believes it is probable that
the Partnership will be unable to collect all amounts due
according to the contractual terms of the loan agreement.  In
determining impairment, the Partnership considers large non-
homogeneous loans including nonaccrual loans, troubled debt
restructuring and performing loans which exhibit, among other
characteristics, high loan-to-value ratios, low debt-coverage
ratios, or other indications that the borrowers are experiencing
increased levels of financial difficulty.  The Partnership bases
the measurement of collateral-dependent impaired loans on the
fair value of the loan's collateral.  The amount, by which the
recorded investment of the loan exceeds the measure of the
impaired loan's value is recognized by recording a valuation
allowance.

At September 30, 1998, the carrying value of loans that are
considered to be impaired totaled $2,023,000 (of which $1,799,000
were on nonaccrual status).  At September 30, 1998, the allowance
for possible loan losses related to loans considered impaired
totaled $569,000.  There were five loans to an unconsolidated
investee considered impaired for which there is no related
allowance for possible loan losses at September 30, 1998.
                             11
However, the unconsolidated investee has recorded an allowance
for losses of $4,144,000 and the Partnership's proportionate
share of losses in unconsolidated investee reflects the majority
of this allowance.  One of the nonaffiliated loans receivable is
recorded with a corresponding deferred profit liability of
$289,000.  There was a $218,000 investment in impaired loans
during the nine months ended September 30, 1998.  For the nine
months ended September 30, 1998, the Partnership recognized
interest income on impaired loans of $276,000 which included
$238,000 of interest income recognized using the cash basis
method of income recognition.

Impact of Accounting Pronouncements Issued but not Adopted by the
Partnership

In June 1997, Statement of Financial Accounting Standards No.
131, "Disclosures about Segments of an Enterprise and Related
Information" was issued and is effective for fiscal years
beginning after December 15, 1997.  This statement establishes
standards for segment reporting in the financial statements.  The
Partnership anticipates that the adoption of this pronouncement
will not result in disclosures that will be materially different
from those presently required.

(3)  CASH AND CASH EQUIVALENTS

At September 30, 1998, the Partnership has approximately
$1,129,000 in cash and cash equivalents held in accounts over the
Federal Deposit Insurance Corporation limit.  These funds are
held in reserve for future operating requirements and future
distributions to limited partners.

<TABLE>
(4)  REAL ESTATE OWNED

<CAPTION>
Real estate owned consists of the following:
                                     (dollars in thousands)
<S>                               <C>              <C>
                                  September 30,      December 31,
                                      1998              1997
-----------------------------------------------------------------
1.  Shopping Center in Upland, CA    $  4,628        $  4,628
2.  19 acres in Sacramento, CA          2,822           2,822
3.  Condominiums in Oxnard, CA            ---           1,040
-----------------------------------------------------------------
Total real estate owned              $  7,450        $  8,490
=================================================================
</TABLE>
                             12
Prior to its sale in the first quarter of 1998, property No. 3
was accounted for as insubstance foreclosure under SFAS 118 as
the Partnership did not hold legal title to this property, but
the borrower surrendered the collateral to the control of the
Partnership.

(5)  TRANSACTIONS WITH AFFILIATES

Under the provisions of the Partnership Agreement, Centennial
Corporation ("CC") is entitled to receive from the Partnership
mortgage investment servicing fees for loans serviced equal to an
annual rate of 1/4 of 1 percent of the committed amount to be
funded by the Partnership.  The Partnership incurred $2,000 and
$1,000 of mortgage investment servicing fees for the nine months
ended September 30, 1998 and $3,000 and $1,000 for the nine and
three months ended September 30, 1997, respectively.

Under the provisions of the Partnership Agreement, the general
partners are to receive compensation for their services in
supervising the affairs of the Partnership.  This partnership
management compensation shall be equal to 10 percent of the cash
available for distribution, as defined in the Partnership
Agreement.  The general partners will not receive this
compensation until the limited partners have received a 12
percent per annum cumulative return on their adjusted invested
capital but are entitled to receive a 5 percent interest in cash
available for distribution in any year until this provision has
been met.  Adjusted invested capital is defined as the original
capital invested less distributions from mortgage reductions.
Payments to the general partners have been limited to 5 percent
of cash available for distribution as the limited partners have
not yet received their 12 percent per annum cumulative return.
Under this provision of the Partnership Agreement, no
distributions were paid to the general partners during the nine
months ended September 30, 1998 or 1997.

The Partnership owns 50 percent of the outstanding capital stock
of a corporation which has not been consolidated in the
accompanying financial statements, LCR Development, Inc.,
("LCR").  The balance of outstanding capital stock in this
corporation is owned by Centennial Mortgage Income Fund II ("CMIF
II"), an affiliate.  LCR has invested in a joint venture,
Silverwood Homes ("Silverwood") which is constructing homes in
Lancaster, CA.  The Partnership has participated in making
several loans to this corporation and this joint venture.  Under
the equity method of accounting, these loans are a component of
the Partnership's investment in LCR, and therefore, the
Partnership has recorded losses by LCR as a reduction of the
carrying value of these loans receivable.
                             13
The Partnership holds a $1,250,000 unsecured note and holds a 50
percent participation in a $2,115,000 unsecured note, both due
from LCR.  The Partnership's share of the $2,115,000 note at
September 30, 1998 is $1,055,000 and the Partnership has applied
$1,055,000, a portion of its cumulative losses from
unconsolidated investee, against the carrying value of the note
as of that same date.  The Partnership has also applied
$1,250,000 of cumulative losses from unconsolidated investee
against the carrying value of the $1,250,000 note as of September
30, 1998.  The Partnership has not accrued its share of interest
income on these notes which was approximately $850,000 as of
September 30, 1998.

Silverwood began constructing a model home complex at the project
in June 1995.  Construction commenced in September 1995 on Phase
I and in February 1997 on Phase II at the project.  At September
30, 1998, the Partnership holds a 50 percent participation in
three notes, due from Silverwood including a land development
loan, a model home loan and a home construction loan on Phase I.
The Partnership also holds a 100 percent ownership in a second
home construction loan on Phase II.  At September 30, 1998, the
Partnership's disbursed balance of the $1,034,000 Phase I
construction loan is $23,000 and the Partnership had applied
$23,000, a portion of the cumulative share of losses from
unconsolidated investee, against the carrying value as of the
same date.  The Partnership's disbursed balance of the $3,266,000
development loan at September 30, 1998, is $1,115,000 and the
Partnership had applied $440,000, the balance of cumulative
losses from unconsolidated investee, against the carrying value
of the note as of the same date.  The Partnership's disbursed
balance of the $490,000 model loan at September 30, 1998 is
$57,000.  At September 30, 1998, the Partnership's disbursed
balance of the $870,000 Phase II construction loan is $87,000.

The consolidated balance sheet and statement of operations of LCR
Development, Inc. have not been consolidated in the Partnership's
financial statements.  The Partnership accounts for its
investment in the corporation using the equity method.  The
following represents condensed financial information for LCR at
September 30, 1998 and for the nine months ended September 30,
1998 and 1997:








                             14
                       LCR Development, Inc.
                    Consolidated Balance Sheets

<TABLE>
<CAPTION>
<S>                                   <C>          <C>
                                    September 30,   December 31,
                                         1998           1997
  Assets                             (Unaudited)
-----------------------------------------------------------------
Cash                                $    18,000    $    11,000
Restricted cash                          20,000         20,000

Real estate owned                     5,832,000      6,950,000
Less allowance for losses on
  real estate investment              4,144,000      4,063,000
-----------------------------------------------------------------
Net real estate owned                 1,688,000      2,887,000

Organization costs                          ---          1,000
-----------------------------------------------------------------
                                    $ 1,726,000    $ 2,919,000
=================================================================

  Liabilities and Stockholders' Deficit
-----------------------------------------------------------------
Notes payable to affiliates
  CMIF                              $ 3,587,000      4,679,000
  CMIF II                             2,239,000      2,250,000
-----------------------------------------------------------------
Total notes payable                   5,826,000      6,929,000

Sales deposit                           160,000            ---
Accounts payable
  and accrued liabilities                14,000         38,000
Interest and taxes payable
  on real property                    1,779,000      1,377,000
Payable to affiliates                     5,000         75,000
-----------------------------------------------------------------
Total liabilities                     7,784,000      8,419,000

Stockholders' deficit                (6,058,000)    (5,500,000)
-----------------------------------------------------------------
                                    $ 1,726,000    $ 2,919,000
=================================================================
</TABLE>



                             15
                     LCR Development, Inc.
              Consolidated Statements of Operations
                         (Unaudited)
<TABLE>
<CAPTION>
<S>                              <C>                <C>
                               Nine months         Nine months
                                  ended               ended
                           September 30, 1998  September 30, 1997
-----------------------------------------------------------------
Housing sales                    $ 1,368,000       $   706,000

Cost of housing sales              1,312,000           725,000
Provision for losses                 215,000           146,000
Selling and marketing expenses        66,000            95,000
General and administrative
  expenses                            28,000            48,000
-----------------------------------------------------------------
Operating (loss)                    (253,000)         (308,000)
Interest expense                     304,000           272,000
-----------------------------------------------------------------
Net loss before income taxes        (557,000)         (580,000)
Income taxes                           1,000             1,000
-----------------------------------------------------------------
Net (loss)                       $  (558,000)      $  (581,000)
=================================================================
Interest not included
  in share of losses                (394,000)         (399,000)
-----------------------------------------------------------------
Allocable net loss               $  (164,000)      $  (182,000)
=================================================================
Share of loss recorded           $   (82,000)      $   (91,000)
=================================================================
</TABLE>
The Partnership owns an interest in BNN Development, Inc., the
corporation that owns the 19 acres in Sacramento, California
jointly with an affiliated entity, CMIF III.  At September 30,
1998, the ownership percentages are 86.25 for the Partnership and
13.75 for CMIF III.  The assets and liabilities of this
corporation have been consolidated in the accompanying
consolidated financial statements.  Note payable and interest
payable to affiliate on note secured by real estate owned
includes $610,000 and $473,000 at September 30, 1998 and December
31, 1997, respectively, and the Partnership had cumulatively
applied $435,000 and $361,000 of minority interest share of
losses from this corporate joint venture against the note payable
to affiliate balance as of the same dates.  The note payable to
affiliate balance reflects CMIF III's share of a note payable by

                             16
the corporation to the Partnership and CMIF III.  The note bears
interest at 15 percent fixed and matures August 1, 1999.

<TABLE>
(6) NOTE PAYABLE

<CAPTION>

Note payable consists of the following:
                                    (dollars in thousands)
<S>                              <C>             <C>
                                  September 30,    December 31,
                                      1998            1997
-----------------------------------------------------------------
Note payable secured by
  shopping center in
  Upland, CA with interest
  and principal payments due
  monthly of $23,048; interest
  rate of 9.5 percent, which may
  be adjusted based on changes
  in the LIBOR rate,
  maturing June 1, 2007             $  2,396         $  2,421
-----------------------------------------------------------------
  Total note payable                $  2,396         $  2,421
=================================================================
</TABLE>

(7) COMMITMENTS

The day to day operations of the Partnership and several other
affiliated partnerships are carried on by employees of the
corporate general partner, Centennial Corporation ("CC").  CC no
longer has any significant operations other than the management
of these partnerships who are in the repayment stage.  During the
first quarter of 1998, several employees resigned from their
employment at CC.  Their resignations were principally due to the
anticipated disposition of the majority of the assets owned by
the Partnership and other affiliated partnerships in the
relatively near future.  The disposition of these assets can
reasonably be expected to precipitate layoffs, and given the
relatively robust job market in Southern California, where the
general partners conduct their operations, these employees opted
to secure positions with other companies with more promising
futures.  As of April 1, 1998, CC employed only six employees.
All of the remaining employees have been employed by CC for over
ten years and have intimate knowledge of the partnerships'
operations.  The general partners concluded that it would be in

                             17
the best interest of the Partnership to provide the remaining
employees with some type of incentive for them to continue
working for the partnerships until the majority of the
partnerships' assets were liquidated.  Accordingly, CC entered
into twelve-month employment contracts with each of these
employees which expire on March 31, 1999.  These employment
contracts have been guaranteed by the Partnership and the
affiliated partnerships.  The contracts include an increase in
salary of 10 percent and also provide that if these employees
remain employed by CC until the end of the contract term, they
will be entitled to severance pay equal to six months base
salary.  The maximum total salaries, employer taxes, related
benefits and severance pay included in these contracts is
approximately $615,000.  The Partnership's anticipated share of
this cost is estimated to be between $275,000 and $300,000,
depending on the amount of time which will be spent by these
employees in managing the affairs of the Partnership.  The
Partnership's share of the cost of these contracts during the
nine months ended September 30, 1998, included in general and
administrative expenses, affiliates, was approximately $139,000.

(8) CONTINGENCIES

Unbeknownst to the Partnership, on July 19, 1996, a default was
entered against the Partnership for failure to respond to a
complaint filed on July 17, 1995 in the San Bernardino Superior
Court, entitled Henry Yong Lim et al -vs- Cardinal Security, et
al and allegedly served on the Partnership in May 1996.  As shown
by the proofs of service, the complaint was served on the wrong
party in 1996.  The Partnership first became aware of its
involvement in this lawsuit in September 1997 when it received
copies of requests for entry of default judgement totaling
approximately $1,000,000.  The judgements involved damages and
injuries allegedly suffered by the plaintiffs as a result of an
altercation between the plaintiffs, other third parties and
security guards employed by the Partnership at its shopping
center in Upland, California.  The request for judgement names
Centennial Mortgage Income Fund Partnership as a defendant in
this action.  Since the Partnership was never served with the
complaint and had no other way of knowing about this action, the
Partnership retained legal counsel to set aside the defaults and
any default judgements which may have been entered, due to the
lack of proper service and notice.  The Partnership has tendered
this action to its liability insurance carrier for legal and
liability coverage.  The default judgement has been set aside and
the plaintiffs' appeal of the set aside has been dismissed by the
court.  Management intends to vigorously defend any future
actions related to this matter.

                             18
Management believes that even if the plaintiffs' prevail in these
actions, the Partnership's insurance coverage and/or the security
company's insurance carrier should prevent the Partnership from
suffering a material loss from these proceedings.

There are no other material pending legal proceedings other than
ordinary routine litigation incidental to the Partnership's
business.  Based in part on advice of legal counsel, management
does not believe that the results of any of these matters will
have a material impact on the Partnership's financial position or
results of operations.





































                             19
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

GENERAL

The Partnership had net income and income per limited partnership
unit of $59,000 and $1.52 for the nine months ended September 30,
1998 and net losses and net losses per limited partnership unit
of ($82,000) and $(2.12) for the nine months ended September 30,
1997.  The increase in income for 1998 is primarily the result of
two loan receivable payoffs which included the repayment of
$226,000 of previously nonaccrued interest.

Cautionary Statements Regarding Forward-Looking Information

The Partnership wishes to caution readers that the forward-
looking statements contained in this Form 10-Q under "Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of Operations" and elsewhere in this Form 10-Q involve
known and unknown risks and uncertainties which may cause the
actual results, performance or achievements of the Partnership to
be materially different from any future results, performance or
achievements expressed or implied by any forward-looking
statements made by or on behalf of the Partnership.  In
connection with the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, the Partnership is
filing the following cautionary statements identifying important
factors that in some cases have affected, and in the future could
cause the Partnership's actual results to differ materially from
those expressed in any such forward-looking statements.

The factors that could cause the Partnership's results to differ
materially include, but are not limited to, general economic and
business conditions, including interest rate fluctuations; the
impact of competitive products and pricing; success of operating
initiatives; adverse publicity; changes in business strategy or
development plans; quality of management; availability, terms and
deployment of capital; the results of financing efforts; business
abilities and judgement of personnel; availability of qualified
personnel; employee benefit costs and changes in, or the failure
to comply with government regulations.

RISKS OF THE YEAR 2000 ISSUE

The Partnership is in the process of liquidating its remaining
assets.  As of November 30, 1998, the Partnership held only cash,
four notes secured by real estate, and two pieces of real
property.  It anticipates that it will hold a lesser number of
assets by January 1, 2000.  Management does not believe that the
value of any of these assets is subject to any valuation risk as
a result of the year 2000 issues, other than general economic
climate issues which might arise.  None of the Partnership's
assets have any equipment with computerized components essential
to their operation.

Although the Partnership has made some changes already to its
software, these changes have not been tested.  The Partnership
intends to begin testing changes made to its existing software in
the next few months.  The Partnership has not, and does not
contemplate spending any significant amount of funds to upgrade
its computer systems inasmuch as virtually all of its computer
needs could easily be met with existing "off the counter"
software and hardware.  The cost of this software and hardware,
if needed, should not exceed $10,000.  The only exception to this
is the computer software which the Partnership uses to track its
limited partners and their addresses.  The Partnership has made a
preliminary evaluation of this software with its outside software
consultant and believes that it can be modified for less than
$10,000.  Even if attempts to correct deficiencies in the
software without spending significant sums are not successful,
the Partnership anticipates that it could convert its systems to
standard spreadsheet or data base programs at a nominal cost.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 1998, the Partnership had $1,829,000 in cash and
interest-bearing deposits.  The Partnership had no unfunded loan
commitments to nonaffiliates at September 30, 1998.  During the
first nine months of 1998, the Partnership's principal sources of
cash were:  i)$762,000 in proceeds from the sale of real estate
owned; ii)$733,000 in principal and nonaccrued interest payments
on loans receivable; iii)$1,287,000 in principal reductions on
loans receivable from affiliates (LCR); iv)$137,000 of loan
proceeds from affiliates (CMIF III loans to BNN); v)$365,000 in
net operating income from real estate owned; and vi)$174,000 in
interest and other income.  The Partnership's principal uses of
cash during the first nine months of 1998 were:  i)a $1,998,000
distribution to limited partners;  ii)$196,000 in advances on
loans made to LCR; iii)$183,000 in interest payments; and
iv)$218,000 in general and administrative costs.

The Partnership's notes payable commitments for the next twelve
months consist of interest and principal payments due of
approximately $277,000.  In addition to the note payable
commitments, the Partnership's principal capital requirements
include: i) real property taxes and bonds on real estate owned of
approximately $142,000 payable during the next twelve months, and
ii) selling, general and administrative costs.  These commitments
are expected to be paid from existing cash balances, future loan
payoffs, and the sale of real estate owned.

The Partnership is continuously evaluating various alternative
strategies for liquidating its real estate assets.  These
alternative strategies could include the subdivision and
improvement of the Partnership's properties in order to increase
their marketability and maximize the return to the limited
partners.  In the event the Partnership decides to implement some
of these strategies, it may require the reinvestment of a portion
of the Partnership's existing cash.  The decision to invest
additional cash in existing assets will only be made if, based on
management's best judgment at the time, there is a clear
indication that such investment will generate a greater return to
the limited partners than any other strategies available to the
Partnership.

Pursuant to the Partnership Agreement, 60 months after the
closing of the offering, cash proceeds from mortgage investments
are no longer available for reinvestment by the Partnership.

Management believes that current and projected liquidity is
sufficient to fund operating expenses and to meet the contractual
obligations and cash flow operating requirements of the
Partnership.  Until recently, the general partners believed that
the cash proceeds from mortgage reductions and the sale of real
estate owned should be retained by the Partnership until such
time as it was assured that it had sufficient cash to fulfill
potential operating requirements.  Due to the substantial real
estate and loan receivable balances, these potential operating
costs were considered to be very significant.  Based upon recent
developments, the Partnership was able to make a distribution to
its limited partners during the third quarter of 1998 for
$1,998,000, or $51.60 per limited partnership unit.

RESULTS OF OPERATIONS

Management has noted that the long-term downturn in the real
estate industry in California has not only stabilized, it has
improved considerably in many sectors of the market.  The
improving real estate markets were a significant factor in the
increased profitability of the Partnership during 1998.

As of September 30, 1998, most of the earning nonaffiliated loans
have been repaid to the Partnership.  As a result of these
payoffs, interest income on loans to nonaffiliates is no longer
expected to be a major contributor to the Partnership's future
revenue.  However, during the first nine months of 1998, two
previously impaired loans were repaid together with approximately
$226,000 in previously nonaccrued interest.  As a result,
interest income on loans to nonaffiliates, including fees
increased to $304,000 and $114,000 for the nine and three months
ended September 30, 1998 from $89,000 and $34,000 for the nine
and three months ended September 30, 1997, respectively.

Interest income on loans to unconsolidated investee, including
fees totaled $31,000 and $7,000 for the nine and three months
ended September 30, 1998 and $20,000 and $13,000 for the nine and
three months ended September 30, 1997, respectively.  Interest
income on loans to unconsolidated investee represents interest
earned on the Silverwood Phase II loan.  The increase for 1998 is
due to the increase in the average balance of the Phase II loan
to Silverwood which funded during 1997.

The outstanding principal balance of loans on nonaccrual at
September 30, 1998 totaled $1,799,000 as compared with $2,313,000
at December 31, 1997.  Loans on "nonaccrual" refer to loans upon
which the Partnership is no longer accruing interest.
Management's policy is to cease accruing interest on loans when
interest and/or principal repayments become 90 days past due.

Real estate loans receivable, earning is comprised of two loans
totaling $313,000 as of September 30, 1998 that are performing.
The Partnership received a $278,000 net cash payoff of one of
these loans during October 1998. The carrying value of this loan
as of September 30, 1998, net of unearned discounts, was
$221,000.

Real estate loans receivable, nonearning is comprised of three
past due or renegotiated loans totaling $1,067,000 as of
September 30, 1998.  These loans are offset by $857,000 in
deferred profit and allowance for possible losses.  Most of the
borrowers have little or no equity in the underlying collateral
for the loans and as a result, these loans effectively represent
an investment in the real estate held as collateral.  Therefore,
these loans are carried on the balance sheet at the fair value of
the collateral or have been fully reserved.  The Partnership
received a $211,000 net cash payoff of one of these loans in
October 1998.  The remaining loans are fully reserved.

Real estate loans receivable from unconsolidated investee,
earning and nonearning represent loans to LCR, an unconsolidated
corporation 50 percent owned by the Partnership, and loans to
Silverwood, a subsidiary of LCR.

The real estate owned balance before allowance for possible
losses at September 30, 1998 and December 31, 1997 was $7,450,000
and $8,490,000, respectively.  The balance at September 30, 1998
is comprised of two properties and is offset by a $2,355,000
allowance for possible losses.  One of three properties held at
December 31, 1997 was sold during the quarter ended March 31,
1998 and the Partnership received approximately $762,000 in net
cash proceeds from the sale.

The following sections entitled Nonaccrual, Nonperforming Loans
and Other Loans to Affiliates and Real Estate Owned provide a
detailed analysis of these assets.

Nonaccrual, Nonperforming Loans and Other Loans to Affiliates

Loans on nonaccrual and nonperforming status at September 30,
1998 are summarized below:

During 1994, the Partnership renegotiated an equity participation
note with an original committed amount of $374,000 secured by a
second deed of trust on a 32,431 square foot shopping center in
Corona, California.  The loan provides for interest due to be
payable at loan maturity; however, due to the amount of the
senior debt and the decrease in land values, the Partnership has
placed the loan on nonaccrual.  The principal balance and
nonaccrued interest at September 30, 1998 were $376,000 and
$173,000 respectively.  The Partnership has recorded a reduction
of $62,000 against the $376,000 principal balance which
represents previously nonaccrued interest and has also recorded a
$289,000 deferred profit in connection with this loan.
Additionally, due to the recent operating history of the property
and the large lien on the property which is senior to the
Partnership's note, an allowance for possible losses of $25,000
has also been recorded against this note.

During 1991, the Partnership sold a pad on an existing piece of
real estate owned in Corona, California and carried back
financing in the amount of $600,000.  The Partnership's share of
the loan is 77 percent.  Due to the loss of the major tenant, the
borrower has been unable to make full monthly interest payments
in accordance with the original note terms.  Management has
worked out a forbearance agreement with the borrower for payments
equal to the net cash flow from the property.  The remaining
interest due has been placed on nonaccrual.  The Partnership's
share of the principal and nonaccrued interest balances at
September 30, 1998 are $461,000 and $171,000, respectively.  The
Partnership has recorded a $250,000 allowance for possible losses
against this note.  The Partnership negotiated a discounted
payoff of this note in conjunction with a sale of the property.
The loan was repaid in October 1998 with the Partnership
receiving net proceeds of $211,000.

During 1989, the Partnership funded a loan with an original
committed amount of $343,000 to provide land development
financing in Perris, California.  The loan matured June 1, 1993
and the borrower was unable to make interest payments or pay off
the loan.  Given the depressed value of the property and the
amount of the delinquent bonds and taxes, the Partnership has
elected not to foreclose on this property and has established an
allowance for losses of $293,000, to fully reserve the carrying
value of the note.  The principal balance and nonaccrued interest
at September 30, 1998 are $293,000 and $241,000, respectively.

During 1994, the Partnership funded a $1,250,000 unsecured note
and a 50 percent participation in a $2,115,000 unsecured note,
both representing workout loans and due from LCR.  These two
loans reflect the majority of the cost basis of 179 residential
lots which LCR contributed to Silverwood.  LCR's only source of
repayment of these notes is the excess, if any, of proceeds from
the sale of the fully developed lots over the amount of secured
debt.  Due to the continuing decline in value of the lots,
management does not expect that either of these notes will ever
be repaid.  As a result, the loans have been placed on
nonaccrual.  As of September 30, 1998, the principal balance and
nonaccrued interest balances of the $1,250,000 note were
$1,250,000 and $465,000, respectively.  The Partnership's share
of the principal and nonaccrued interest balances of the
$2,115,000 note as of the same date were $1,055,000 and $385,000,
respectively.  As discussed in note 5 of Notes to Consolidated
Financial Statements, the Partnership has reduced the carrying
value of these notes by $2,305,000, a portion of its share of
losses from this unconsolidated investee.

During 1994 and 1995, LCR evaluated various alternative
strategies for liquidating its investment in the 179 lots in
Lancaster.  During 1994, LCR determined that its best course of
action appeared to be the full-scale buildout and sale of single-
family homes since the market for finished lots had fallen so
significantly.  LCR obtained construction financing commitments
from the Partnership and Centennial Mortgage Income Fund II
("CMIF II"), an affiliate.  LCR entered into a joint venture
agreement entitled Silverwood with Home Devco to construct and
sell single-family homes at the project.

Silverwood began constructing a model home complex at the project
in June 1995.  Construction commenced in September 1995 on Phase
I and February 1997 on Phase II at the project.  At September 30,
1998, the Partnership holds a 50 percent participation in three
notes and a 100 percent interest in a fourth note due from
Silverwood consisting of a land development loan, a model home
loan and two home construction loans with a combined disbursed
balance of $1,282,000.  The Partnership's disbursed balance of
the $3,266,000 development loan at September 30, 1998 is
$1,115,000.  The Partnership's disbursed balance of the $490,000
model loan at September 30, 1998 is $57,000.  The Partnership's
disbursed balance of the $1,034,000 Phase I construction loan at
September 30, 1998 is $23,000.  The Partnership's disbursed
balance of the $870,000 Phase II construction loan at September
30, 1998 is $87,000.  As discussed in note 5 of Notes to
Consolidated Financial Statements, the Partnership had reduced
the carrying value of the land development and the Phase I loan
by $463,000, the remainder of its share of losses in
unconsolidated investee.

Sales volumes of new homes in the Lancaster area have continued
to remain sluggish since 1995 while sales prices have remained
relatively flat and construction costs have increased.  This has
caused a further decline in the value of finished lots and a
reduction in the anticipated net proceeds the Partnership expects
it might realize from the buildout of homes at the project.
Additionally, Silverwood closed escrow on only two homes during
the twelve calendar months of 1996, seven homes during the twelve
calendar months of 1997, and eleven homes during the first nine
months of 1998, far less than originally anticipated.  As a
result of these factors, LCR recorded a $207,000, $2,516,000 and
$1,077,000 provision for losses on real estate investments during
the years ended December 31, 1997, 1996 and 1995, respectively.
As of September 30, 1998, Silverwood had entered into a purchase
and sale agreement to sell one of the remaining two homes.  This
escrow closed on October 26, 1998.  Silverwood had also entered
into a purchase and sale agreement to sell the 157 remaining
undeveloped lots for $1,570,000 and had shutdown its homebuilding
activities.  The transaction required that the Partnership and
CMIF II provide $1,170,000 in financing to the buyer.  Although a
final computation has not been determined, management does not
believe that the transaction will result in any material gain or
loss.  This transaction also closed escrow in October 1998.

Real Estate Owned

A description of the Partnership's principal real estate owned
and loan classified as insubstance foreclosure follows:

Shopping Center in Upland, California

During the third quarter of 1988, the Partnership foreclosed on a
loan secured by this project.  The Partnership originally
committed $5,600,000 for the rehabilitation of a 33,327 square
foot retail center and construction of an automotive service
facility in Upland, California.  Cost overruns and construction
delays prevented the borrower from selling the project and
thereby performing on the loan.  The property generated net
operating income before debt service of $365,000 during the first
nine months of 1998 and its carrying value before allowance for
possible losses was $4,628,000 at September 30, 1998.  The
property is encumbered by a note of $2,396,000, secured by a
first trust deed on the property.  The Partnership oversees the
management and leasing of the property which is currently 96
percent leased.  The Partnership had recorded a $776,000
allowance for losses related to this property as of September 30,
1998.

19.81 Acres in Sacramento, California

During the third quarter of 1991, the Partnership took a deed in
lieu of foreclosure on a second trust deed secured by 19 acres of
undeveloped land in Sacramento, California.  The property is
located in the North Natomas area and is zoned for light-
industrial commercial use.  The Partnership continues to finalize
the entitlement processing, flood issues and provide for utility
services for the property and has accepted an offer to purchase
the property for $1,730,000 or approximately $2.00 per net square
foot.  The escrow provides for $300,000 to be set aside for
engineering costs and is scheduled to close December 30, 1998,
although there can be no assurance that this escrow will ever
close.  At September 30, 1998, the carrying value before
allowance for possible losses of this asset was $2,822,000 and
the Partnership had recorded a $1,579,000 allowance for losses
related to this project.

Condominiums in Oxnard, California

During 1990, the Partnership funded a loan secured by a first
trust deed with an original committed amount of $3,000,000 for
the construction of 12 condominiums in Oxnard, California.  The
borrower signed over control to the second trust deed holder in
December 1992, the second trust deed holder, an affiliate,
abandoned the property. At that time, the Partnership controlled
the property and began receiving 100 percent of all sales
proceeds net of selling costs.  As a result, the Partnership
recorded an insubstance foreclosure on these 12 condominiums.
During the first quarter of 1998, the Partnership sold the
remaining four units.  These sales generated approximately
$762,000 in net cash proceeds and resulted in a $21,000 gain on
sale, after charging off the previously recorded $299,000
allowance for losses against the property.

INTEREST ON INTEREST-BEARING DEPOSITS

Interest earned on interest-bearing deposits totaled $65,000 and
$22,000 for the nine and three months ended September 30, 1998
and $53,000 and $16,000 for the nine and three months ended
September 30, 1997, respectively.  Interest on interest-bearing
deposits represents interest earned on Partnership funds
invested, for liquidity, in time certificate and money market
deposits.  The increase in income on interest-bearing deposits is
principally due to increased cash balances for the nine months
ended September 30, 1998.

INCOME FROM OPERATIONS OF REAL ESTATE OWNED

Income from operations of real estate owned consists of rental
income of $500,000 and $162,000 for the nine and three months
ended September 30, 1998 and $597,000 and $161,000 for the nine
and three months ended September 30, 1997, respectively.  The
1997 revenues are from the Upland shopping center and the auto
retail center in Corona while the 1998 revenues include only the
Upland shopping center due to the sale of the auto retail center
in the third quarter of 1997.

PROVISION FOR POSSIBLE LOSSES

The provision for possible losses was $155,000 for the nine and
three months ended September 30, 1998.  There was no provision
for possible losses for the nine and three months ended September
30, 1997.  The 1998 provision was recorded to reflect the
$300,000 set aside requirement included in the pending sale of
the 19.81 acres in Sacramento.  Management believes that the
allowance for possible losses at September 30, 1998 is adequate
to absorb the known and inherent risk in the Partnership's loan
and real estate owned portfolio.

SHARE OF LOSSES IN UNCONSOLIDATED INVESTEES

The Partnership has invested in LCR, a corporation in which it
has less than a majority ownership and accounts for this
investment using the equity method.  The Partnership's share of
losses in this unconsolidated investee was $82,000 and $6,000 for
the nine and three months ended September 30, 1998 and $91,000
and $37,000 for the nine and three months ended September 30,
1997, respectively.  The share of losses consists primarily of
provisions for losses on real estate investments related to the
179 lots in Lancaster owned by LCR.

OTHER EXPENSES

Operating expenses from operations of real estate owned were
$110,000 and $43,000 for the nine and three months ended
September 30, 1998 and $114,000 and $48,000 for the nine and
three months ended September 30, 1997, respectively.  The 1997
expenses were associated with both the Upland shopping center and
the auto retail center in Corona while the 1998 expenses excluded
the auto retail center.  The 1998 expenses for Upland increased
due to additional roofing expenses incurred in 1998 that were not
required in 1997.  This increase at Upland offset the reduction
in operating costs associated with the auto retail center as a
result of the sale.

Operating expenses from operations of real estate owned paid to
affiliates were $25,000 and $10,000 for the nine and three months
ended September 30, 1998 and $31,000 and $8,000 for the nine and
three months ended September 30, 1997, respectively.  The
operating expenses consist of property management fees paid to
affiliates of the general partners.  The decrease for 1998 is due
to the sale of the auto retail center in 1997.

Expenses associated with non-operating real estate owned were
$97,000 and $29,000 for the nine and three months ended September
30, 1998 and $114,000 and $39,000 for the nine and three months
ended September 30, 1997, respectively.  The expenses relate to
the 19 acres in Sacramento and the condominiums in Oxnard.
Approximately $75,000 of the 1998 costs represent real property
taxes.  The decrease for the nine months ended September 30, 1998
is due to the sale of the condominiums in Oxnard.

Depreciation and amortization expense was $6,000 and $2,000 for
the nine and three months ended September 30, 1998 and $10,000
and $3,000 for the nine and three months ended September 30,
1997, respectively, related to leasehold improvements at the
Upland shopping center and furniture and fixtures of the
Partnership.

Interest expense was $187,000 and $56,000 for the nine and three
months ended September 30, 1998 and $293,000 and $93,000 for the
nine and three months ended September 30, 1997, respectively.
The interest expense during 1997 relates to both the Upland
shopping center and the 19 acres in Sacramento, California.  In
December 1997, the loan secured by the 19 acres in Sacramento was
repaid.  Accordingly, interest expense during 1998 no longer
includes interest on this note which caused the decrease from
1997 to 1998.

General and administrative expenses, affiliates totaled $213,000
and $69,000 for the nine and three months ended September 30,
1998 and $156,000 and $49,000 for the nine and three months ended
September 30, 1997, respectively.  These expenses are primarily
salary allocation reimbursements paid to affiliates.  As
discussed in note 7 of Notes to Consolidated Financial
Statements, the employees of the corporate general partner have
entered into contracts which provided for salary increases of 10
percent and severance benefits.  General and administrative
expenses for the nine and three months ended September 30, 1998
include approximately $49,000 and $25,000, respectively, in
accrued severance pay with respect to these contracts.

General and administrative expenses, nonaffiliates totaled
$60,000 and $26,000 for the nine and three months ended September
30, 1998 and $84,000 and $29,000 for the nine and three months
ended September 30, 1997, respectively.  These expenses consist
of other costs associated with the administration of the
Partnership.  The decrease for the nine and three months ended
September 30, 1998 is primarily due to the decrease in legal
costs associated with the Upland shopping center refinance paid
in 1997.

Mortgage investment servicing fees totaled $2,000 and $1,000 for
the nine and three months ended September 30, 1998 and $3,000 and
$1,000 for the nine and three months ended September 30, 1997,
respectively.  This consists of fees paid to Centennial
Corporation for servicing the Partnership's loan portfolio.



































                          PART II

OTHER INFORMATION

Item 1.  Legal Proceedings

See note 8 of Notes to Consolidated Financial Statements


Item 2.  Changes in Securities

         None


Item 3.  Defaults Upon Senior Securities

         None


Item 4.  Submission of Matters to a Vote of Security Holders

         None


Item 5.  Other Information

         None


Item 6.  Exhibits and Reports on Form 8-K

         (a) None

         (b) None
















                         Signatures


Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.


CENTENNIAL MORTGAGE INCOME FUND AND SUBSIDIARIES
A California Limited Partnership


By:/s/John B. Joseph
_________________________________
John B. Joseph
General Partner                                 November 16, 1998


By:/s/Ronald R. White
_________________________________
Ronald R. White
General Partner                                 November 16, 1998


By:  CENTENNIAL CORPORATION
     General Partner


/s/Joel H. Miner
_________________________________
Joel H. Miner
Chief Financial Officer                         November 16, 1998